1411. Which of the following has the highest cost of capital?

A. Equity shares *
B. Loans
C. Bonds
D. Preference shares

1412. Cost of capital for government securities is also known as ________.

A. Risk-free rate of interest *
B. Maximum rate of return
C. Rate of interest and fixed deposits
D. None of the above

1413. Cost of capital for bonds and debentures is calculated to ______.

A. Before tax basis
B. After tax basis *
C. Risk-free rate of interest basis
D. None of the above

1414. Weighted average cost of capital is generally denoted by________.

C. KO *

1415. Which of the following cost of capital require tax adjustment ?

A. Cost of equity shares
B. Cost of preference shares
C. Cost of Debentures *
D. Cost of retained earnings

1416. Which is the most expensive source of funds ?

A. New equity shares *
B. New preference shares
C. New debts
D. Retained earnings

1417. Marginal cost of capital is the cost of __________.

A. Additional sales
B. Additional funds *
C. Additional interest
D. None of the above

1418. In case the firm is all equity financed, WACC would be equal to________.

A. Cost of Debt
B. Cost of equity *
C. Neither A or B
D. Both A and B

1419. In case of partially debt- financed firm KO is less_______.

B. KE *
C. Both A and B
D. None of the above

1420. In order to calculate weighted average cost of weights may be based on _________.

A. Market values
B. Target values
C. Book values
D. All of the above *